First post-monsoon LNG cargo coming to Dabhol

Vol 23, PW 22 (10 Sep 20) Midstream, Downstream, Renewables
       

After five months in monsoon hibernation, the GAIL-operated Dabhol LNG terminal is preparing to spring back into life.

On September 22, GAIL is landing its first post-monsoon LNG cargo at Dabhol with the arrival of new-build Japan-flagged Energy Glory, which left Dominion Cove Point in the US on August 23 carrying LNG under GAIL's 20-year contract for 2.3m t/y from 2017 to 2037. Energy Cargo is one of two back-to-back GAIL shipments from its Dominion Cove contract that GAIL is landing after a gap of almost two months.

On September 14, GAIL lands the first of the two cargoes aboard 163,285-cubic metre capacity LNG tanker Meridian Spirit. On hire to GAIL for three years from January 2018, Meridien left the Cove Point loading facility on August 19 (2020).

GAIL meanwhile continues to push much of its Dominion Cove LNG cargoes into global markets. Through US subsidiary, GAIL Global (USA) LNG, it is offering at least three LNG cargoes from Cove Point in May, June and July (2021).

A GAIL source confirms the FOB tender for the three cargoes closed on September 8. So far this (calendar) year (2020), GAIL has sold nine shipments (one load a month) from Cove Point; another three it will sell in October, November and December (2020).

"Bringing US cargoes to India is expensive," says a GAIL source. "We prefer to sell cargoes directly from the US to global markets."